As I always say, the most conservative way to play a descending channel is to look for resistance near the top of the channel. And, as luck would have it, that’s where price is currently at. Looking at our technical indicators, the moving averages aren’t really helping much since they’re oscillating, but stochastic is already indicating oversold conditions. The only thing that worries me about this setup is that price has been closing above the 200 SMA and also seems to be hugging the top of the channel since that could potentially mean strong bullish interest, so get ready for a possible upside breakout as well.
Up next, I’ve got another descending channel for NZD/JPY’s 1-hour forex chart. Similar to the setup for AUD/JPY, the pair is currently milling about close to the top of the channel. In addition, the moving averages are already in downtrend mode, with the 200 SMA acting as dynamic resistance. Also, stochastic is already pointing down and moving away from overbought territory, so forex traders who are bearish on the pair may be taking control already. Moreover, the top of the channel is pretty close to the 81.00 major psychological level, which is a price area of significant market interest, so there’s a good chance that price will respect the price area and make its way down.
The final item for today’s intraday forex charts updates is that there ascending channel on GBP/JPY’s 1-hour forex time frame. There are no conservative setups available right now since price has already bounced off the bottom of the channel, but aggressive traders might want to know that price appears to be hesitating at the mid-channel area. Also, stochastic is currently at the overbought area and is beginning to point down, so there’s a possibility that price will be making its way back down soon. In any case, make sure to practice proper risk management should you find a trade based on this or any of the other charts, alright?
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To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis. Lucky for us, Pip Diddy fills us in on what we need to know about fundamentals with his Daily Forex Fundamentals